9913.HK WACC - Weighted Average Cost of Capital

The WACC of Chi Kan Holdings Ltd (9913.HK) is 6.9%.

The Cost of Equity of Chi Kan Holdings Ltd (9913.HK) is 6.95%.

The Cost of Debt of Chi Kan Holdings Ltd (9913.HK) is 4.85%.

	Range	Selected
Cost of equity	5.60% - 8.30%	6.95%
Tax rate	21.40% - 24.70%	23.05%
Cost of debt	4.00% - 5.70%	4.85%
WACC	5.6% - 8.3%	6.9%

WACC

9913.HK WACC calculation

Category	Low	High

Long-term bond rate	2.9%	3.4%
Equity market risk premium	6.0%	7.0%
Adjusted beta	0.46	0.64

Additional risk adjustments	0.0%	0.5%
Cost of equity	5.60%	8.30%

Tax rate	21.40%	24.70%
Debt/Equity ratio	0	0
Cost of debt	4.00%	5.70%

After-tax WACC	5.6%	8.3%


Selected WACC	6.9%

9913.HK's CAPM model and how its cost of Equity is calculated

The Cost of Equity reflects the return a company needs to deliver to shareholders to justify the risk of investing in its shares. It’s computed using the Capital Asset Pricing Model (CAPM), which blends the risk-free rate, the stock’s beta, and the market risk premium.

This method evaluates the stock’s risk compared to a safe investment and the market’s overall volatility.

Here’s how we figure out the cost of equity for 9913.HK:

cost_of_equity (6.95%) = risk_free_rate (3.15%) + equity_risk_premium (6.50%) * adjusted_beta (0.46) + risk_adjustments (0.25%)

We include the risk adjustments, which range from 0% to 1%, to keep our WACC conservatives, especially for companies traded in developing markets.